In 1992, Russia eliminated many of the import restrictions imposed by the former Soviet Union. At the beginning of 2001, Russia put into effect a new and simpler tariff structure, consisting of four basic rates: 5%, 10%, 15%, and 20%. This effectively lowered the tariff ceiling from 30% to 20%. There is also a 20% value-added tax (VAT) on most imported goods, except for food products, which carry a VAT of only 10%. Excise taxes on luxury goods, alcohol, tobacco, and autos range from 20% to 570%. In total, these duties make imported goods essentially noncompetitive in the troubled Russian economy.